Tybourne Capital Management HK Ltd. Reduces Its Holdings in Zillow Group, Inc.

Tybourne Capital Management HK Ltd. significantly cut its stake in Zillow Group, Inc. (NASDAQ:ZG - Free Report) during the third quarter of the year. According to the latest Form 13F filing with the Securities and Exchange Commission (SEC), the firm decreased its holdings by 95.4%, leaving it with only 40,953 shares after selling off 858,285 shares during that time frame. Now, Zillow Group represents about 0.7% of Tybourne's overall investment portfolio, positioning the stock as their 17th largest holding. The reported value of Tybourne’s remaining stake in Zillow Group is approximately $2,536,000.

Changes by Other Investors

Other large investors have also adjusted their investments in Zillow Group recently. Dimensional Fund Advisors LP increased its stake by 8.7% in the second quarter, now holding 441,800 shares worth around $19,901,000, following an additional 35,503 shares acquired. Similarly, Selkirk Management LLC boosted its holdings by 37.4%, owning 320,800 shares valued at $14,449,000 after purchasing an extra 87,300 shares in the past quarter. US Bancorp DE also increased its stake by 6.5%, now possessing 297,819 shares worth $18,444,000, after adding 18,136 shares. Moreover, Cynosure Group LLC took a new position in Zillow during the third quarter amounting to approximately $12,248,000. Lastly, Raymond James & Associates expanded its holdings by 7.0%, now owning 193,023 shares worth about $8,694,000 after acquiring an additional 12,616 shares. It is noted that hedge funds and other institutional investors currently own about 20.32% of Zillow’s stock.

Insider Transactions

In related news, there have been some insider transactions at Zillow Group. On September 3rd, Director Erik C. Blachford sold 1,413 shares at an average price of $54.87, totaling $77,531.31 in value. After this sale, his holdings decreased by 3.84%, leaving him with 35,403 shares valued at approximately $1,942,562.61. The details of this transaction were reported in a legal filing with the SEC. Additionally, CFO Jeremy Hofmann sold 7,175 shares on November 27th for an average price of $85.36, which amounted to $612,458.00. This sale reduced his holdings by 6.73%, leaving him with 99,362 shares valued at around $8,481,540.32. Over the past ninety days, insiders have sold a total of 160,439 shares worth $11,576,823. Currently, 17.14% of the company’s stock is owned by insiders.

Zillow Group Performance Overview

As for the stock’s performance, Zillow Group's share price opened at $82.33 on Thursday. The stock has fluctuated over the past year, with a low of $38.06 and a high of $83.25. The fifty-day moving average is currently at $64.50, while the 200-day moving average stands at $53.44. The company exhibits a debt-to-equity ratio of 0.11, a quick ratio of 3.13, and a current ratio also of 3.13.

Recently, Zillow Group reported its quarterly earnings results on November 6th. The company recorded earnings of $0.35 per share, surpassing analysts' consensus estimate of $0.32 by $0.03. Despite a negative return on equity of 2.33% and a net margin of -6.17%, Zillow achieved revenue of $581.00 million for the quarter, exceeding projections of $555.45 million. This marks a 17.1% increase in revenue compared to the same period last year, during which the company experienced a loss of $0.12 per share. Analysts expect Zillow Group to report earnings of -0.33 per share for the current fiscal year.

Analyst Insights

Recently, various equity analysts have expressed their opinions on Zillow Group. Piper Sandler maintained an "overweight" rating with a revised price target of $73.00, up from a previous $62.00, on November 7th. Royal Bank of Canada also raised its price target from $66.00 to $74.00, giving Zillow an "outperform" rating. Evercore ISI increased its target from $55.00 to $75.00, citing an "outperform" rating. Susquehanna also raised its price target from $55.00 to $75.00 with a "neutral" rating on November 11th, while The Goldman Sachs Group raised its target from $42.00 to $47.00, providing a "neutral" rating. Currently, one analyst has rated Zillow with a sell signal, five have issued hold ratings, and twelve have assigned buy ratings, leading to a consensus rating of "Moderate Buy" along with a consensus price target of $69.65.

Overview of Zillow Group

Zillow Group, Inc. operates a variety of real estate brands, focusing on mobile applications and websites within the United States. The company provides services such as premier agent and rental marketplaces, new construction marketplaces, as well as advertising and business technology solutions including dotloop and floor plans. Additionally, Zillow offers mortgage services and advertising solutions to mortgage lenders and professionals, along with title and escrow services.

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